The State Department of Transportation (Caltrans) has approved the City’s DBE program for Federal Fiscal Year 2002-03 (attached). The new DBE program contains an annual goal of 11% DBE participation on all projects funded in whole or in part by the United States Department of Transportation. Staff is recommending that Council approve this program for federal fiscal year 2002-2003 and authorize the filing of all appropriate documents with Caltrans.

Caltrans is responsible for ensuring compliance with requirements for participation by disadvantaged business enterprises when local agencies develop streets and roadways using federal funds. The City is required to implement a DBE program and establish goals for participation by disadvantaged business enterprises before a request for reimbursement is approved by Caltrans, the state oversight agency.

The City adopted a formal DBE program on February 2, 1993 and has renewed this program in all subsequent federal fiscal years.

The United States Department of Transportation (DOT) issued new regulations pertaining to the participation of Disadvantaged Business Enterprises (49 CFR Part 26) in March 1999. A series of discussions then began between Caltrans and DOT on how best to implement these guidelines. These discussions resulted in Caltrans issuing final DBE Program Guidelines during the Summer of 2000. The City Council approved the first amended Sunnyvale DBE program on December 19, 2000.

The City has established a DBE goal of 11% for Federal Fiscal Year 2002-2003. The DBE Program and goal were submitted to Caltrans at the end of June, with Caltrans approval secured in August.

Approval of the City’s DBE program is required in order to apply for federal reimbursement. The City's DBE program was prepared by staff on the basis of Caltrans guidelines. The main elements of the program are:

1. Designation of a DBE Liaison Officer who will be responsible for administering the Program for the City. Michael Chan, Senior Administrator in the Public Works Department, is currently the City of Sunnyvale’s DBE Liaison.

2. Affirmation of the Program annually by public notice in both minority and majority local media. The publication shall include an overall DBE goal.

3. Establishment of the DBE goal. The DBE goal will be established both annually (overall) and on a per-contract basis. The overall goal will be based on planned contract activity for the coming year, and would be subject to the criteria established in the federal regulations.

The annual DBE goal should be established each year to coincide with the federal fiscal year. Staff is recommending that City Council approve a DBE goal of 11% for the period of October 1, 2002 through September 30, 2003. The DBE program was established in federal fiscal year 1993-94 and has been renewed in all subsequent years.

This goal is based on an analysis of U.S. Census Bureau and Caltrans data for Santa Clara County. The 11% goal represents no change from the previous 11% goal, which was approved for Federal Fiscal Year 2001-02. Since DBE is a federally mandated program, it is not in violation of State Proposition 209, which eliminates affirmative action programs.

This annual adoption of a Disadvantaged Business Enterprise Program for federally funded projects will allow the City to receive reimbursement on approximately $2.9 million in federally funded transportation grants for the following capital projects:

Adoption of the required DBE program would also facilitate the approval of federal funds for any other qualifying capital projects that may be approved during the federal fiscal year.

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, publication of the Council agenda in the San Jose Mercury News, Nuevo Mundo and Viet Mercury and the availability of the report in the Library and the City Clerk’s Office. After Council approval, a public notice of the City’s DBE Program will also be published in a local minority newspaper.

1. Adopt the attached DBE Program for Federal Fiscal Year 2002-2003.

2. Reject a renewal of the City’s existing DBE program.

RECOMMENDATION

Staff recommends alternative #1, adoption of the DBE program for the current federal fiscal year.

Prepared by:

Michael A. Chan

Senior Administrator / Property Manager

Reviewed by:

Marvin A. Rose
Director of Public Works

Approved by:
Robert S. LaSala
City Manager

Attachments

A. DBE Program